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Severance Pay Contract
I need a Severance Pay Contract for a senior executive in our Dubai tech company who is being made redundant effective March 15, 2025, including specific provisions for stock options and annual bonus pro-rating.
1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant identification numbers
2. Background: Context of the severance agreement, including reference to the original employment contract and reason for termination
3. Definitions: Key terms used in the agreement including 'Basic Salary', 'Gross Salary', 'Service Period', and other relevant terminology
4. Calculation of Severance Pay: Detailed explanation of how the severance pay is calculated according to UAE Labor Law, including basic salary, length of service, and applicable multipliers
5. Payment Terms: Timing and method of severance payment, including any installment arrangements if applicable
6. Tax and Deductions: Statement regarding any applicable taxes or deductions from the severance amount
7. Full and Final Settlement: Confirmation that the payment represents full and final settlement of all claims
8. Confidentiality: Obligations regarding confidentiality of the severance terms and company information
9. Return of Company Property: Requirements for returning company assets and documents
10. Governing Law: Confirmation of UAE law application and jurisdiction
11. Execution: Signature blocks and execution requirements
1. Non-Competition and Non-Solicitation: Required when the employer wishes to enforce post-employment restrictions
2. Free Zone Specific Provisions: Required when employment is within DIFC or ADGM, incorporating specific free zone regulations
3. Voluntary Resignation Provisions: Included when the severance is due to voluntary resignation rather than termination
4. Medical Insurance Extension: Optional provision for continuing medical coverage post-employment
5. Reference and Recommendations: Terms regarding the provision of employment references
6. Outplacement Services: When the employer is providing career transition support
7. Dispute Resolution: Specific dispute resolution procedures beyond standard court jurisdiction
1. Schedule 1 - Severance Calculation Breakdown: Detailed mathematical calculation of the severance amount including basic salary, service years, and any additional benefits
2. Schedule 2 - Outstanding Benefits Statement: List of any additional payments such as accrued leave, pro-rated bonuses, or other benefits
3. Schedule 3 - Company Property Checklist: Itemized list of company property to be returned
4. Appendix A - Original Employment Contract: Copy of the original employment contract referenced in the severance agreement
5. Appendix B - Resignation/Termination Letter: Copy of the formal termination or resignation documentation
6. Appendix C - Employee Clearance Form: Standard company clearance form confirming return of assets and settlement of dues
Authors
Applicable Law
Basic Salary
Business Day
Cause
Company
Confidential Information
Date of Termination
Effective Date
Employee
Employment Contract
End of Service Benefits
Final Settlement Date
Force Majeure
Governing Law
Gratuity
Gross Misconduct
Gross Salary
Leave Balance
Notice Period
Original Employment Date
Party/Parties
Payment Date
Resignation
Service Period
Severance Amount
Severance Payment
Termination Benefits
Total Remuneration
UAE
UAE Labor Law
Unpaid Salary
Working Day
Calculation of Severance
Payment Terms
Tax and Deductions
Release and Waiver
Confidentiality
Non-Disparagement
Non-Competition
Non-Solicitation
Return of Property
Cooperation
Full and Final Settlement
Continuing Obligations
References
Medical Benefits
Outstanding Leave
Bonus Entitlements
Gratuity Calculation
Notice Period
Legal Compliance
Governing Law
Dispute Resolution
Severability
Entire Agreement
Amendment
Notices
Force Majeure
Third Party Rights
Counterparts
Assignment
Banking & Financial Services
Technology
Real Estate & Construction
Oil & Gas
Healthcare
Retail & Consumer Goods
Manufacturing
Professional Services
Hospitality & Tourism
Education
Telecommunications
Media & Entertainment
Transport & Logistics
Government & Public Sector
Human Resources
Legal
Finance
Payroll
Compliance
Operations
Administration
Executive Leadership
Risk Management
Chief Executive Officer
Chief Human Resources Officer
HR Director
HR Manager
Legal Counsel
Employment Lawyer
Compensation & Benefits Manager
HR Business Partner
Finance Director
Payroll Manager
Compliance Officer
Operations Director
Department Head
Line Manager
Administrative Officer
Find the exact document you need
Severance Pay Contract
UAE-governed agreement outlining severance payment terms and conditions in compliance with Federal Decree-Law No. 33 of 2021.
Mutual Termination Agreement Employment
UAE-compliant agreement for consensual termination of employment relationship, outlining termination terms and final settlements under UAE labor law.
Layoff Separation Agreement
UAE-governed employment separation agreement documenting layoff terms, final settlements, and mutual obligations under UAE Labor Law.
Mutual Severance Agreement
UAE-compliant agreement documenting mutually agreed employment termination terms and conditions between employer and employee.
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